Walmart is dissolving its relationship with its JV partner in India as it opts to go it alone in the country.
The world’s biggest retailer will buy out its joint venture partner Bharti Enterprises. The partnership operates 20 wholesale cash and carry stores in India.
International supermarket groups have found it difficult to expand in India due to restrictions relating to foreign direct investment. Despite India last year relaxing regulations to allow companies to own up to 51% of their Indian operations, few have applied, with many citing strict pre-conditions.
In a joint statement the companies said: “Walmart plans to continue to grow this business while working with the government and interested stakeholders to create conditions that enable foreign direct investment in multi-brand retail.”
The relationship between the companies has been fraught with difficulties. Last year the joint venture suspended employees, including the chief financial officer, as part of an internal investigation into bribery allegations.